The Power of Financial Education: How Black Churches are Bridging the Wealth Gap

In the Dallas-Fort Worth area, a staggering wealth gap exists between Black and white households. According to a 2018 report by Prosperity Now, Black families in Dallas had a median household income of $31,000, just 42% of the median income for white families. But what can be done to address this disparity? For many, the answer lies in the financial education programs offered by Black churches. At Concord Church, senior pastor Bryan Carter gave a four-week sermon series called "Money Matters" that focused on personal finance. He encouraged congregants to join a "financial fast" where they spent money only on necessities. Carter believes that when we manage our finances wisely, we are being good stewards of God's blessings. But why is financial literacy so important in the Black community? According to Jamal-Dominique Hopkins, director of the Black church studies program at Baylor's Truett Theological Seminary, the generational wealth gap between Black and white communities is vast, with each generation starting from scratch. This means that Black families often have less of a foundation to build upon, making financial education a crucial step towards economic mobility. Many Black churches are stepping up to fill the gap, offering financial education classes and assistance programs. At St. Luke "Community" United Methodist Church, pastor Richie Butler preaches about personal finance and the importance of stewardship. He encourages congregants to consider "what it means to be a good steward of everything — every dollar, every minute of my life. " But it's not just about preaching; these churches are taking action. Friendship-West Baptist Church offers a six-week personal finance class and one-off workshops on home buying, investing, and credit. The church also acquired a credit union, Faith Cooperative Federal Credit Union, which offers a variety of banking services, including auto, mortgage, and micro loans. The impact is real. Kimberly James, who took a personal finance class at Concord Church, was able to pay off her debt and even buy a house. Corey Love, who attended a workshop at Faith Cooperative Federal Credit Union, was able to improve his credit score and finance his business. So, what can we learn from these examples? It's clear that financial education is a crucial step towards closing the wealth gap. But it's also important to recognize that faith and financial literacy are not mutually exclusive. In fact, many of these churches believe that financial education is a form of spiritual stewardship. As we consider the wealth gap between Black and white households, let's not forget the power of financial education and the role that Black churches are playing in bridging this gap. By providing access to financial education and resources, these churches are not only helping their congregants achieve financial stability but also empowering them to achieve economic mobility.